![]() Stablecoins: The New Digital Currency
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In a landmark decision, the U.S. House of Representatives passed a bill on July 17, 2025, to establish a regulatory framework for stablecoins, digital currencies pegged to the U.S. dollar. The bill, known as the Genius Act, was sent to President Donald Trump for his signature and is expected to be signed into law.
This move is considered a significant turning point for the digital asset industry, which has been lobbying for federal legalization for years, including spending hundreds of millions of dollars on last year’s election to support pro-crypto candidates.
The House also passed two other cryptocurrency bills on the same day, which were then sent to the Senate for consideration. One bill aims to create a comprehensive legal framework for the industry, while the other prohibits the issuance of central bank digital currencies.
The Genius Act for stablecoins and the Clarity Act for the market structure of cryptocurrencies both received significant bipartisan support. The Genius Act passed with 308 votes in favor and 122 against.
Stablecoins are a type of cryptocurrency designed to maintain a stable value, often pegged 1:1 to the U.S. dollar, and have become popular for trading digital assets. Their use has surged in recent years, fueled by expectations of instant fund transfers.
If enacted, the Genius Act will require stablecoins to be backed by liquid assets such as U.S. dollars or short-term Treasury bonds, and issuers will be mandated to disclose their reserve composition monthly.
Summer Mersinger, CEO of the Blockchain Association and a former official at the Commodity Futures Trading Commission (CFTC), remarked, “This is a pivotal moment in the development of digital asset policy in the United States.”
The cryptocurrency industry has long advocated for Congress to pass laws establishing clear regulations for digital assets, arguing that a transparent legal framework will lead to wider adoption of stablecoins and other cryptocurrencies.
While the House passed a stablecoin bill last year, it was not taken up by the then-Democratic-controlled Senate. President Trump is currently pursuing a comprehensive overhaul of the U.S. cryptocurrency policy.
However, some cryptocurrency projects associated with President Trump, including the meme coin $TRUMP launched in January and the digital currency company World Liberty Financial, in which he has a stake, have sparked controversy on Capitol Hill.
The White House has asserted that there is no conflict of interest regarding Trump’s involvement, as his assets are managed by a trust run by his son.
Meanwhile, the Clarity Act, which passed the House with 294 votes in favor and 134 against, will play a crucial role in determining when a cryptocurrency is considered a security or a commodity, thereby clarifying the regulatory authority of the Securities and Exchange Commission (SEC) over the industry. This issue has been a source of intense debate during the Biden administration.
Crypto companies argue that most cryptocurrencies should be classified as commodities, which would allow trading platforms to operate with fewer stringent securities regulations.
The Clarity Act now awaits passage by the Senate before it can be sent to President Trump for his signature.
Some Democratic lawmakers strongly opposed the bill, concerned that it could be a “gift” to cryptocurrency projects associated with President Trump due to relaxed oversight.
The House also passed a bill prohibiting the issuance of central bank digital currencies, with Republicans arguing that such currencies could infringe on citizens’ privacy. This topic sparked intense debate in the House this week.
Thanh Tùng
– 06:06 18/07/2025
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